Category Archives:Chesapeake Bank

Whether you’re looking to start your own small business, develop a parcel of land or increase your business’ cash flow, applying for a commercial loan can come with many questions.

To help you figure out whether a commercial loan is right for you, the team at Chesapeake Bank created a list of FAQs about business lending. We hope this list helps answer your questions and provides clarity into commercial lending.

Who is the best candidate for a commercial loan?

Anyone who needs to borrow money for business use is a potential candidate for a commercial loan. Commercial lending can also be used to start a line of credit for your business or simply transition your existing commercial banking relationship to an experienced local lender focused on your business’ bottom line.

What are commercial loans typically used for?

There are a variety of uses for a commercial loan, including, but not limited to: purchasing land, purchasing a building, new construction, renovation costs, working capital loans, working capital lines of credit, acquiring fleet vehicles, asset purchases, business expansion, business acquisition, even buying out a business partner.

What are the requirements to qualify for a commercial loan?

As with any loan, there are specific requirements that vary based on the type of loan and what the funds will be used for. For most commercial loans, approval is dependent on good credit, collateral amount, positive cash flow to support loan repayments and proven experience in the line of business the applicant is pursuing.

Who is responsible for loan repayment?

The business and its owners are all jointly responsible for the payment of a commercial loan.

How long is a commercial loan?

The life of a commercial loan can greatly vary, ranging from 90 days to up to 20 years. Depending on whether you’re seeking a loan or a line of credit, the business repays the loan over a set period of time, or sometimes, all at once.

Ready to get started?

Contact Chesapeake Bank and ask to be referred to one of your local commercial loan officers to get started. During your initial meeting, your loan officer will assess your goals and help you choose the option that best fits your borrowing needs. We pride ourselves in helping business owners get the right loan by providing quick, local decisions, competitive rates and personalized terms.

You remember shopping for your home and all the careful planning and number crunching that went into it. Well, when it comes to deciding whether or not refinancing is right for you, we suggest you revert to those ways to make sure you’re not getting in over your head. In certain situations, refinancing can be just what you need to get ahead and free up some money for life’s expenditures.

Let’s start from the top. In a nutshell, refinancing your mortgage is essentially applying for a new loan with new terms and a different interest rate. With a refinance, homeowners can choose to extend their loan term to lower monthly payments, or reduce loan terms to pay a mortgage off more quickly. However, most refinancing situations involve homeowners lowering monthly mortgage payments.

From home renovations to children heading to college, we’ve heard all the reasons why homeowners consider the benefits of refinancing. There are many advantages to refinancing. Each person’s situation is different. So, we have listed the pros and cons to refinancing below. A good mortgage lender should be able to talk through your options with you and help you decide before you even start the process.

Pros

Lower monthly payments. In most cases, your mortgage is your largest monthly bill. Life can get expensive at times and certain situations may require you finding ways to add more to your monthly budget.

Financial flexibility. Maybe one month you’ll want to pay extra toward your mortgage or maybe you’ll decide to make an improvement on your home, the bright side is that you’ll have options.

Change your type of mortgage. Refinancing can give you the opportunity to opt for a new type of loan, like switching to a fixed-rate mortgage if your original loan was an adjustable-rate mortgage.

Seek out a new lender. This could be a good time to compare rates and look for new, viable mortgage lending partners.

Cons

The urge to splurge. We included this drawback as refinancing could be a slippery slope without a plan in place to make smart decisions and change behaviors. It shouldn’t mean more room on your credit card or more cash to spend; extra funds should be productively spent or saved.

Fees. Along with a loan will come fees and closing costs that you could be required to pay out of pocket. Your mortgage lender can help you run some calculations to determine if this is the right time for you.

Less mobility. In order to recoup the cost of the refinance you’ll likely need to remain in your home for a certain number of years. You will want to talk through this scenario with your lender as well.

Paperwork. Such is life, but it should be no surprise that any commitment takes time, energy and a lot of ink will need to dry before the process is over. Depending on the type of loan you choose and how quickly we receive corresponding documents; the loan application process with Chesapeake Bank takes about 45 days. We do our best to take you quickly through the process.

In most cases, refinancing your home opens up opportunity for yourself, your family and your home. If you’re considering a refinance, you’ll want a local lender, like us, that can help you decide if refinancing is right for you. But regardless of who your lender is, make sure you know all you need to know about loan payment options, any prepayment penalties, what the loan will cost and how long it will take to recoup those costs.

Ready to get started?

At Chesapeake Bank, our goal is to provide the highest level of service at competitive rates. We strive to structure your real estate loan and mortgage options to fit your individual needs. Apply now to get started.

Owning your own home is an integral part of the American dream. But before you go all-in, there are many financial aspects to consider. After all, taking on a monthly mortgage payment and the costs associated with owning a home can be a major financial adjustment.

When it’s best to buy a home

In order to be ready to settle down and buy a home, you have to be able to do just that…settle down. When questioning whether or not you are ready to buy, ask yourself if you are ready to stay in one place for the next couple of years. You also need to make sure your finances are in order, your credit history looks good and you have extra funds to cover things like closing costs, a down payment, moving expenses, home maintenance and an emergency fund.

When it’s best to continue renting

If you’re still exploring your options or considering a career move, that’s OK, but buying probably isn’t for you. Take some time while you rent to figure out your next move, pay off some of your personal loans and raise your credit score to better prepare for when you are ready to buy.

What to consider when buying a home

Owning a home comes with a certain set of perks aside from being able to remodel and redecorate. Long-term benefits such as equity, appreciation in value, tax deductions and an increase in your credit score are great selling points when considering buying. But, there’s no turning back if you change your mind. If you decide to move, you are responsible for finding a tenant to pay the mortgage (if your loan allows it) or selling your home altogether, which could take a while.

What to consider when continuing to rent

Renting allows the flexibility to change your location based on personal preference or a career change. While you don’t have long-term home security or freedom to renovate, renting does provide minimal responsibilities. You are only responsible for paying for renter’s insurance to cover your personal belongings while the home or building owner is responsible for paying taxes, insurance and cost of maintaining the home.

5 simple questions to help you decide

How long do I plan to live in the home?

How much can I afford in a monthly mortgage payment?

Do I have proof of a steady income?

Is my credit history in good shape?

Do I have extra funds to cover closing costs and unexpected home emergencies?

Remember, it takes more than simply looking at your mortgage payment to determine whether you should rent or buy. Our Mortgage Center offers a Rent vs. Buy calculator to help you work through the fees, taxes and monthly payments associated with purchasing a home to ensure you’re making a good financial decision.

I’ve decided buying a home is right for me, what next?

Once you have weighed the options, the next step should be to meet with your local mortgage lender. This meeting will help determine the amount of money you qualify to borrow; it will also ensure you’re able to attain a pre-qualification letter before meeting with a real estate agent.

At the start of your house search, it’s not always clear how much your down payment will be. The amount depends on the type of loan and typically ranges from 3-20 percent of the cost of the home.

Home Possible® loans

If you can’t afford a down payment, Freddie Mac’s Home Possible mortgage may be an option for you. Home Possible loans offer low down payments for low-to-moderate income homebuyers. To qualify, the borrower’s annual income must be equal or less than the area median income (AMI) for the census tract where the property is located.

These loans offer more flexible sources of down payments, low down payments options and refinance options, but have stricter borrower qualifications and loan limits.

Ready to get started?

At Chesapeake Bank, our goal is to provide the highest level of service at competitive rates. We strive to structure your real estate loan and mortgage options to fit your individual needs. Apply now to get started.

A lot of people are intimidated by the building process and what they think a construction loan might be like. It is true that when you build, you would typically get a line of credit to cover the construction then convert the loan to a permanent mortgage once construction was complete. For some, that fact coupled with managing builders, sounds daunting. So, many buyers consider refinancing their existing home to cover the cost of construction for the new home.

While that may first sound easier, there are some really good reasons why you should get a construction loan.

First and foremost, with a construction loan, you’re not paying for something that you’re not using! Typically, construction periods are a minimum of twelve months. When you refinance, you’re paying interest on the full amount that you borrow from day one, including the period that you’re not living in the home. With a construction loan, you’re only paying interest on the cost of the build out. Payments are made in increments to the builder as steps have been completed throughout the construction period.

Second, if you choose Chesapeake to fund your construction loan, we’ll work with your builder to try and avoid any delays. With your approval and because we’re already involved, we could handle all transactions directly with the builder. This means that you would have more time to pick out the details that will make the house, your home. In contrast, by refinancing, you would be left with handling most of those interactions directly.

Third, while this point may be last, it could be the most important. When you choose a construction loan, a title company will provide protection to you in case there is an issue with the builder. The fact of the matter is that things happen. -Even when you’ve done your due diligence and know the builder really well. Mechanics liens can be issued. The contractor can fold. Other problems could arise. If you choose to cover construction through a refinance and something happens. Then you could potentially pay ALL of those costs again and be out the money that you’ve already paid.

As you can see, there are some legitimate reasons but also benefits from this type of lending. We’re also happy to report that most customers are even surprised to discover that the construction process isn’t as scary as they originally thought.

-And while we have your attention

We know that it can be overwhelming to choose your lender. So, we hope you don’t mind this plug about why we’re different.

We don’t have a laundry list of fees like other companies. We’re not even paying an outside party for your inspections. We can do those in house. Mortgage brokers aren’t usually set up to handle construction loans, so a refinance may be your only option through one of them. Since we’re in the community that you live in, no lender will care about you or your home, as we will.

And finally, we’re also running a mortgage campaign, and with approval, we will waive your appraisal fee up to $600! This promotion runs from April 10th, 2017 to May 31, 2017.There is no better time to act than right now. Apply Now